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Section I – Overview

1.1   Minister’s Message

The Honourable John Baird, P.C., M.P., Minister of Transport, Infrastructure and Communities I am pleased to present Transport Canada’s Departmental Performance Report for 2007-08. It describes how the department supports a stronger economy, ensures a secure and safe transportation system and works towards a cleaner environment.

Canada needs seamless and strategic connections among marine, rail, road and air transportation networks to compete in today’s global economy. That is why the new National Policy Framework for Strategic Gateways and Trade Corridors, a key element of the $33 billion Building Canada infrastructure plan, now guides the development of trade-related transportation infrastructure. We are making real progress on the Asia-Pacific Gateway and Corridor Initiative, the Ontario-Quebec Continental Gateway and Trade Corridor, and the Atlantic Gateway.

Canada is a world leader in national transportation system security and safety. For example, in 2007-08, Transport Canada’s $80 million Transit-Secure program enhanced passenger rail security and urban transit security across Canada. We also continued to work with industry to streamline regulations and build on Transport Canada’s safety and security actions by implementing transportation safety management systems and security management systems that enhance performance and protect Canadians.

The Government of Canada’s commitment to protect the environment and tackle climate change includes reducing greenhouse gas emissions by 20 per cent from 2006 levels, by 2020. This year, the government announced a plan to regulate fuel efficiency for new cars and light-duty trucks under the Motor Vehicle Consumption Standards Act, beginning with 2011 models.  Transport Canada is proud to contribute to this effort through its ecotransport initiatives.

This report describes how, in 2007-08, Transport Canada delivered transportation policies, regulatory initiatives and programs that create economic opportunities, improve security, increase safety and protect the environment.

I am proud of the department’s achievements, which deliver real results for Canadians.

The Honourable John Baird, P.C., M.P.
Minister of Transport, Infrastructure and Communities

1.2 Management Representation Statement

I submit for tabling in Parliament, the 2007-2008 Departmental Performance Report for Transport Canada.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2007-08 Estimates:

Reports on Plans and Priorities and Departmental Performance Reports:

  • It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat guidance;
  • It is based on the department’s approved Strategic Outcomes and Program Activity Architecture that were approved by the Treasury Board;
  • It presents consistent, comprehensive, balanced and reliable information;
  • It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
  • It reports finances based on approved numbers from the Estimates and the Public Accounts of Canada.

Louis Ranger
Deputy Minister of Transport, Infrastructure and Communities

1.3   Transport Canada at a Glance

1.3.1    Mandate

From the opening of the continent to the construction of railways, ports, airports, the Seaway and the Trans-Canada Highway, transportation has provided the essential links that bind the country together:  it has been the key to building Canada. For the first hundred years of confederation, the federal role was to build, maintain, subsidize and regulate the infrastructure and services needed to meet the needs of a fledgling nation. But needs evolved with new economic imperatives and this led to divestiture and commercialization of many ports and airports in 1996. Managing change in the transportation sector has become a dominant theme in recent decades, and a key commitment for Transport Canada.

Since February 2006, Transport Canada has formed part of the Transport, Infrastructure and Communities Portfolio. The Portfolio also includes Infrastructure Canada, three agencies operating at arm's length from the department, 16 Crown Corporations (e.g. VIA Rail, Marine Atlantic) and over 40 shared-governance organizations (e.g. Port of Montreal, Vancouver International Airport). The creation of this portfolio has provided an unprecedented opportunity to integrate transportation policies and infrastructure funding programs (e.g. $2.1 billion for gateways and border crossings).

The department's mandate is indeed vast and complex. Transport Canada managed three program activities aligned to three strategic outcomes and administered 60 statutes. These strategic outcomes support a vision of a transportation system that is recognized world-wide as efficient, safe and secure and environmentally sustainable.

To promote an efficient transportation system that contributes to Canada’s economic and trade objectives, Transport Canada:

  • Establishes marketplace policies to govern the economic behavior of transportation carriers (e.g. rules for arbitrating disputes between shippers and rail carriers);
  • Provides policy leadership for gateways and trade corridors and a vast range of transportation infrastructure programs (e.g. $1 billion for the Asia-Pacific Gateway); and
  • Stimulates innovation (e.g. promotes the use of state-of-the-art intelligent
    transportation systems).

To ensure a safe and secure transportation system that contributes to Canada’s social development and security objectives, Transport Canada:

  • Develops transportation safety regulations and oversees their implementation (e.g. safety at railway crossings);
  • Manages programs to support safety-related investments at small airports, protects navigable waterways, and certifies and licenses aircraft, vessels and road vehicles (e.g. certification of child car seats);
  • Provides air transport services to support aviation safety oversight work and federal and municipal clients (e.g. maintenance and operation of Coast Guard helicopters).
  • Develops policies and programs that respond to emerging security risks and keep Canada competitive (e.g. funding of security equipment at ports);
  • Develops transportation security regulations and oversees their implementation by industry (e.g. standards for screening of passengers at airports); and
  • Works with international and national partners to advance a shared and effective transportation security agenda (e.g. standards for security plans at ports).

To achieve an environmentally responsible transportation system that contributes to Canada’s sustainable development objectives, Transport Canada:

  • Establishes policies, regulations and programs to reduce the level of greenhouse
    gas (GHG) emissions and pollutants from transportation (e.g. new regulations on automobile fuel consumption);
  • Protects the aquatic environment from transportation-related pollution sources
    (e.g. fines ship owners for oil spills); and
  • Acts as a responsible environmental steward of the government's transportation assets and activities (e.g. remediation of contaminated sites).

1.3.2 Financial and Human Resources ($ thousands)

To support its mandate, Transport Canada is assigned the following resources:

Planned Spending Total Authorities Actual Spending
867,997 1,103,801 835,704

Total Human Resources (Full time equivalents (FTEs))

Planned Actual Difference
5,090 5,043 (47)

1.3.3 A Changing Environment

To continue to serve the interests of Canada and Canadians, Transport Canada must increasingly look beyond borders to adapt to global trends; it must also take stock of changes in the government and in the department.

Globalization is transforming Canada’s manufacturing processes and trade patterns. New world powers, notably in Asia, present Canada with rich potential markets and new challenges. Canada’s reputation as a reliable transportation choice has been hurt by recent congestion problems, labour disruptions and capacity constraints on the West Coast. To be a successful link in global supply chains, Canada needs a reliable national transportation system.

For this reason, all levels of government and the private sector need to invest more in infrastructure and new technology, reversing years of under-spending. Canada’s transportation system will also need to be adaptable and competitive with others involved in building global supply chains. This means eliminating bottlenecks and improving how the marine, road, rail and air assets work together as effective gateways and trade corridors to global markets.

The tragic events of September 11, 2001, followed by the Madrid and London bombings, led to real changes in Canada’s approach to national security. Transport Canada had to instantly assume new and broader security responsibilities. The department has relied on its strong links with industry to implement a new security agenda. In this context, the role that transportation plays in preserving Canada’s access to the continental market is critical. We must be responsive to the security concerns of our major trading partners. Transport Canada must ensure that security policies and other measures at its borders do not become trade barriers and obstacles.

Climate change and clean air remain a central concern of Canadians. That is why the federal government issued Turning the Corner, a comprehensive, long-term plan to drastically reduce GHG emissions. Transportation is responsible for about 25 per cent of GHG emissions in Canada. For this reason, Transport Canada is taking the lead on developing new environmental policy, and regulatory and program initiatives. Transportation policy, programs and regulations must provide a framework that addresses the three pillars of achieving a sustainable transportation system – social, economic and environmental.

Within the government, Advantage Canada is the cornerstone of economic policies and programming. As part of our competitiveness agenda, transportation is central to achieving stronger productivity growth. To this end, the department will continue to promote innovation in full partnership with industry, and increasingly with universities.

Advantage Canada identifies modern infrastructure as a key element. As a member of the Transport, Infrastructure and Communities portfolio, the department now plays a central role in our infrastructure agenda. With about 75 per cent of the large infrastructure projects likely to be transport-related under the Building Canada Plan, Transport Canada is well-placed to better leverage investment decisions.

As the Building Canada Plan is being implemented, there are high expectations for accountability and transparency at Transport Canada. This is also true for each Program Activity within the department. The challenge is to clarify roles, improve control systems, promote better long-term planning, and realign resources. Transport Canada is devoting more time to this end.

Streamlined regulatory approaches and more harmonized standards are also an important element of Advantage Canada and the competitiveness agenda. Transport Canada has already started to shift its regulatory approach in transportation safety.

In its effort to maintain high safety standards as the transportation sector is growing, it is continuing to implement a Safety Management System to create a strong safety culture in the industry and make operators more accountable for ensuring that appropriate safety practices are part of their daily operations. The department is also drawing from that experience to shape its approach to security oversight.

Transport Canada also faces the challenges of an ageing workforce. More than two employees in five, and three managers in five, will be eligible to retire within the next ten years.

In managing the risks in the changing environment, the Executive Management Committee at Transport Canada utilizes a recently developed Corporate Risk Profile to identify risk management and mitigation strategies. The profile comprises an essential part of its Risk Management Framework and is a major component of integrated planning and reporting. The corporate risk profile informs departmental decision-making and has guided Transport Canada’s internal audit plan and its Integrated Human Resources Plan.

It is the combination of global forces at play and the changes internal to government that set the context for the department’s performance and progress towards its strategic outcomes and priorities. Indeed, in future reporting, the department will further clarify its performance results by describing them against a newly developed Program Activity Architecture (PAA). In the future PAA, security will be a separate Strategic Outcome from safety. This reconfigured PAA will help bolster Transport Canada’s planning and reporting capabilities. The department began work on an integrated business planning and reporting process that aligns with and links directly to internal services including Human Resources, Information Management, Information Technology, Finance and Communications. A developed Performance Measurement Framework will enable Transport Canada to better measure how its Program Activities contribute to its Strategic Outcomes and to broader government priorities.

1.3.4    Program Activity Architecture and Program Priorities

The 2007-2008 Departmental Performance Report describes performance in relation to commitments outlined in the 2007-2008 Report on Plans and Priorities. The Program Activity Architecture (PAA) includes three Strategic Outcomes, which represent the difference a department intends to make for Canadians, along with program activities that are designed and managed to meet a specific public need.

To effectively carry out the program activities, Transport Canada in 2007-2008 identified nine program priorities that are aligned to its three strategic outcomes:

1.   Market-Based Policy Framework

2.   Infrastructure, Gateways and Trade Corridors

3.   Innovation

1.   An efficient transportation system that contributes to Canada’s economic growth and trade objectives

4.   New Security Policies and Programs

5.   Streamlining Regulations

6.   Safety and Security Management Systems

2.   A safe and secure transportation system that contributes to Canada’s social development and security objectives

7.   Climate Change and Clean Air

8.   Environmental Assessments

9.   Environmental Protection and Remediation

3.   An environmentally responsible transportation system that contributes to Canada’s sustainable development objectives

Transport Canada:  Strategic Outcomes in Context

Of the thirteen Government of Canada outcome areas, Transport Canada is aligned with strong economic growth, a fair and secure marketplace, safe and secure communities, and a clean and healthy environment.

Government of Canada Outcome Areas

Strong economic growth

Safe and Secure communities

A clean and healthy environment

A fair and secure marketplace

Strong economic growth

Transport Canada Strategic Outcomes

An efficient transportation system

A Safe and Secure transportation system

An environmentally responsible transportation system

An efficient transportation system that contributes to Canada’s economic growth and trade objectives

A safe and secure transportation system that contributes to Canada’s social development and security objectives

An environmentally responsible transportation system that contributes to Canada’s sustainable development objectives

Program Activities

Policies, Programs and Infrastructure in support of a mark-based framework

Policies, Rulemaking, Monitoring and Outreach in support of a safe and secure transportation system

Policies and Programs in support of sustainable development

Program Priorities
  • Market-based policy framework
  • Infrastructure, gateways and trade corridors
  • Innovation
  • New security policies and programs
  • Streamlining regulations
  • Safety and security management systems
  • Climate change and clean air
  • Environmental assessments
  • Environmental protection and remediation
  • Amendments to the Canada Transportation Act and the Canada Marine Act
  • Air Services Agreements
  • Building Canada Plan
  • Gateways and
    Trade Corridors
  • Public Transit Capital Trust
  • Inter-City Passenger Rail Service
  • Transportation Infrastructure Projects
  • Port Divestiture
  • Airport Infrastructure
  • Innovation
  • Safety and Security Management Systems
  • Amendments to the Canada Shipping Act, Railway Safety Act Review
  • Regulatory Harmonization
  • Collaboration
  • Air Cargo Security
  • Passenger Protect Program
  • Transit-Secure
  • Marine Security
  • Motor Vehicle Fuel Consumption Act
  • Voluntary Emission Reduction Agreements
  • National Aerial Surveillance Program
  • Ecotransport Strategy;
    • Ecomobility
    • Ecotechnology
    • Ecoauto
    • Ecofreight

The following tables link Transport Canada’s departmental priorities, performance status and highlights of achievements to Strategic Outcomes and Program Activities.

Strategic Outcome: An efficient transportation system that contributes to Canada’s economic growth and trade objectives

Alignment to Government of Canada Outcome Areas:

Strong economic growth / A fair and secure marketplace

Program Activity:  Policies, Programs and Infrastructure in support of a market-based framework

Planned Spending (thousands) $101,459        Actual Spending (thousands) $123,998

Program Priority 1: Market-based policy framework

Expected Results

Performance Status

Highlights of Achievements

Legislative framework that supports free market forces with government intervention targeted to situations where market forces are insufficient

Successfully Met

Amended the Canada Transportation Act,

Canada Pilotage Act,

Canada Marine Act, and

Canada Shipping Act 2001

A competitive and viable Canadian transportation sector

Successfully Met

Extended Aviation War Risk Liability Program

Divested 3 ports in QC and NL under Port Divestiture Program

Negotiated operating and refurbishment agreements for the federal fleet of grain hopper cars with railways

Modernized economic regulation of the air industry, including bilateral air agreements for international air services

Program Priority 2: Infrastructure, gateways and trade corridors

Expected Results

Performance Status

Highlights of Achievements

Long-term sustainable funding and accountability framework for transportation infrastructure

Successfully Met

Established Building Canada Plan, including the Gateways and Border Crossings Fund

Developed National Policy Framework for Strategic Gateways and Trade Corridors

Implemented Asia-Pacific Gateway and Corridor Initiative

Launched Ontario-Quebec Continental Trade Corridor and Atlantic Gateway

Advanced Canada-U.S. Ontario-Michigan Border Transportation Partnership

Created Vancouver-Fraser Port Authority

Monitored Airport Performance

Undertook St. Lawrence Seaway Infrastructure Needs Study

Developed Marine Atlantic long-term strategy

Committed to Via Rail Capital improvements

Increased investment in transportation infrastructure

Successfully Met

Announced Public Transit Capital Trust 2008 provincial/territorial investment plans

Established Building Canada Fund

Developed Gateways and Border Crossings Fund

Concluded Bilateral Infrastructure Framework Agreements with Provincial/Territorial Governments

Completed major infrastructure projects under the Canada Strategic Infrastructure Fund, Border Infrastructure Fund and the Strategic Highway Infrastructure Program

Strengthened governance, transparency and accountability

Successfully Met

Streamlined governance procedures for appointments to Port Authorities

Strengthened Canadian competitiveness in international markets

Successfully Met

Brought into force the International Bridges and Tunnels Act

Developed Regulations on Maintenance and Repair and Operation and use for international bridges and tunnels.

Drafted guidelines for construction, alteration, and sale and transfer of international bridges and tunnels

Program Priority 3: Innovation

Expected Results

Performance Status

Highlights of Achievements

Highly skilled labour force and increased investment in transportation-related R&D, including ITS

Successfully Met

Conducted strategic research and development (R&D)

Fostered innovation and skills development

Deployment of ITS technologies to enhance safety, security, efficiency and environmental sustainability of the Canadian transportation system of ITS

Use of R&D results to enhance safety, security, efficiency and environmental sustainability of the Canadian transportation system

Successfully Met

Published Transport Canada R&D Annual Report

Completed review of Intelligent Transportation Systems National Strategy

Completed R&D Projects

Released scientific/technical reports

Strategic Outcome:  A safe and secure transportation system that contributes to Canada’s social development and security objectives

Alignment to Government of Canada Outcome Area:  Safe and secure communities

Program Activity:  Policies, Rulemaking,, Monitoring and Outreach in support of a safe and secure transportation system

Planned Spending (thousands) $641,525        Actual Spending (thousands) $566,177

Program Priority 4: New security policies and programs

Expected Results

Performance Status

Highlights of Achievements

Greater awareness, understanding cooperation of and compliance with transportation security systems

Successfully Met

Developed multi-modal transportation security strategy

Pilot tested Air Cargo Security Measures

Established Passenger Protect Program

Managed Transit-Secure

Increased stakeholder ability to meet transportation security and emergency preparedness requirements

Successfully Met

Managed Marine Transportation Security Clearance Program

Established Marine Security Operations Centres

Developed virtual tool box in support of fatigue risk management regulations

Program Priority 5: Smart Regulation

Expected Results

Performance Status

Highlights of Achievements

Increased flexibility and innovation opportunities for industry


Harmonized selected aviation security standards in North America

Concluded Memorandum of Cooperation with U.S. on Next Generation Tank Car

Harmonized standards for Transportation of Dangerous Goods in tanks

Updated alternative arrangements with the U.S. Coast Guard

Collaborated with the National Highway Traffic Safety Administration

Adopted Global Technical Regulations

Regulations reflecting the needs and concerns of industry and the public

Successfully Met

Received acceptance of approval for tank and container specifications for use in the U.S.

Enhanced international standards and regulations when transporting dangerous goods, enhancing safety without hindering trade

Successfully Met

Received award from the Community of Federal Regulators for Regulatory Excellence demonstrated by the CSA 2001

Launched Railway Safety Act Review

Amended Marine Transportation Security Regulations

Program Priority 6: Safety and security management systems:  Implementing safety and security management systems (SMS and SeMS) in aviation, rail and marine organizations

Expected Results

Performance Status

Highlights of Achievements

Improved commitment by industry to adopt SMS / SeMS

Enhanced awareness and safety culture in industry

Successfully Met

Launched Moving Forward in April 2007

Strategic Outcome:  An environmentally responsible transportation system that contributes to Canada’s sustainable development objectives

Alignment to Government of Canada Outcome Area:  A clean and healthy
environment / Strong economic growth

Program Activity:  Policies and Programs in support of sustainable development

Planned Spending (thousands) $125,013        Actual Spending (thousands) $145,529

Program Priority 7: Climate change and Clear Air

Expected Results

Performance Status

Highlights of Achievements

Increased awareness of sustainable transportation choices and climate change impacts

Successfully Met

Began development of regulations for new motor vehicles and railway operations

Increased ability for the public to make more sustainable transportation choices

Successfully Met

Announced ecotransport Strategy programs

Funded municipal transportation demand management projects

Reduction of emissions in the transportation sector


Announced ecotransport Strategy;

  • Ecomobility
  • Ecofreight
  • Ecotechnology for Vehicles programs
  • Ecoauto Rebate Program
  • Freight Technology Demonstration Fund
  • Freight Technology Incentives Program

Urban Transportation Showcase Program

Program Priority 8: Environmental Assessments

Expected Results

Performance Status

Highlights of Achievements

Streamlining and more efficient use of the department resources

Successfully Met

Over 876 environmental assessments underway or completed under the Canadian Environmental Assessment Act

Reviewed and revised existing tools, and developed and implemented new tools and guidance to increase efficiency in the use of departmental resources

Sustainable development goal is advanced

Successfully Met

Included strategic environmental assessment for departmental proposed policy, plans and programs

Offered training to employees

Program Priority 9: Environmental protection and remediation

Expected Results

Performance Status

Highlights of Achievements

Reduced environmental impacts despite a sustained growth of aviation

Successfully Met

Sponsored PARTNER (Partnership for Air Transportation and Noise and Emissions Reduction) Center of Excellence with NASA (National Aeronautics and Space Administration) to expand environmental research capacity in the field of aviation

Reduction of Air Transportation and Emissions

Successfully Met

Suspected contaminated sites are identified and high-risk sites are remediated/risk managed

Successfully Met

To date 324 contaminated sites in the departmental database have undergone remediation or risk management, 63 sites are being remediated, 113 are under assessment, 46 are suspected and 70 have no action

Reduced frequency of illegal pollution discharges from vessels

Successfully Met

Used National Aerial Surveillance Program to detect ship-source pollutants

Number of large offshore oil spills and associated sightings of oiled birds has been reduced despite the growth in the transport of oil and marine shipping

Improved quality of the marine environment

Successfully Met

Developed regulatory improvements aimed at improving the safety of Arctic shipping and the protection of the marine environment

Reduction of toxic locomotive emissions

Successfully Met

Concluded MOU with the Railway Association of Canada aimed at reducing toxic emissions and greenhouse gases from rail locomotives